Make Sure You Are Crystal Clear About Your "Invest" Definition

In today's unstable economy, many people are searching for alternative means of making money and creating their own retirement plans. It is becoming clear that corporations and governments cannot guarantee your retirement plan upon turning 65. As a result, many are taking control of their own futures and putting their money into investments like property and shares. For others, it may be a distant dream, but they are not quite sure where they should begin. The definition of "invest" is a broad one and there are several methods. 

Buying a property is considered a fairly safe kind of investment, because real estate generally appreciates in value. There are a couple of different options to choose from. You can purchase a single home, a multi-unit complex or a vacation home to rent out to various tenants; alternatively, you can purchase a home for a low price and renovate it, then sell it for a higher price. Each option has its pros and cons and it's important to do some research before making a decision on which method you will go with.

Becoming a landlord is a huge responsibility, and you will need to become familiar with the local laws regarding tenants. They will be well aware of their rights, so you should be aware of yours. If you consider yourself a DIY person and can install floors, renovate bathrooms and apply a coat of paint, then flipping properties may be for you. 

When you complete the renovations yourself, you save money and increase your profit. When everything has been done, sell it at market value. Once it's sold, you can collect a nice big lump sum of money. Now, you can find another home and repeat the entire process. When you rent your properties, you receive a smaller amount of money, but it is a steady monthly income.

Keeping a lump sum of money in a bank account is not a good wealth-building method. If you decide not to purchase any more properties, another investment option is shares. When you buy the shares of a company, you are becoming part owner of that company. There are many public organisations and companies that offer their shares for purchase. You can get them via a self-directed investment account or a stockbroker. Due diligence and research are imperative before deciding which companies to include in your portfolio. 

You make a profit with shares by buying low and selling high. Depending on the type of company you invest in, you could see profits in just a few weeks, or it might take a few years. Many people buy stocks and hang on to them for at least 10 years; others sell them as soon as they realise they will make money.

An easier option is to invest in Index funds and or Exchange Traded Funds (ETFs) where you are buying a group of companies as opposed to one individual company. Buying into a group of companies protects you when the prices fall as you are not as exposed in comparison to one individual company.

But above all be clear as to your invest definition, and increase your knowledge and resources, you are able to make better decisions. Having a comprehensive plan is a good first step to taking care of your financial security. The time has come to stop depending on governments and corporations to provide your funds for retirement. 

Article Source: https://EzineArticles.com/expert/Mike_McLoughlin/587899

Where to start when Investing in the Stock Market

Investing in the share market has never been as easy as it is today thanks to share market platforms where everyday investors can invest as little as $10 at a time. Compare that to investing through a share broker where fees make this uneconomic unless you are able to invest a few thousand dollars at a time. Problem with this is that unless one had tens of thousands of dollars to invest then diversification where money is invested in a variety of companies is out of the question. 

The solution to this is Index funds, where your money is pooled with those of other investors. The Index fund tracks indices such as the S&P500, Nasdaq, Dow Jones, FTSE, ASX, Dax etc. Expense ratio fees are low and the benefit is that you don't have to pay buy and sell fees to an advisor every time an organisation leaves or joins an Index. 

Your money is also now invested in a variety of companies and industry types for diversification and for risk mitigation.

Sharesies is a popular trading platform in New Zealand but is certainly not the only one; Hatch, Kernel, and Invest Now are others. In the US, Robin Hood and Webull are popular trading platforms. In Australia Raiz, Spaceship, CommSec are popular and in the UK you can open a Stocks and Shares ISA which allows you to have a tax efficient trading account.

There are so many benefits of getting involved in the share market in this way with the main one being that it improves your financial literacy. It is all very well just reading books of a financial nature but knowledge comes from action otherwise what you may have learned on paper is just information. 

The basic rules of investing still need to be adhered to such as not placing all of your eggs in the one basket and investing according to your goals. If you require the money in the short-term then investing in growth stocks which are high return but with higher risk is not a suitable investment because chances are that the stock price will be down at the time when you need the money.

Micro investing is an excellent way to get involved in the share market. It helps to build your financial know-how, not to mention your wealth. 

Femvestorsglobal supports you in all areas of financial education as we help you with the basic fundamentals of investing, we give you everything you need so you have both the confidence and courage to start investing yourself.

So what are you waiting for?

Financial Advice For Single Women

Financial advice geared toward single women is more important than ever before. 

Roughly one-quarter of all households are currently headed by a single woman, with family sizes ranging from no kids to with kids. It might seem financially unfeasible for one woman to raise children on her own. Further complicating the situation is the fact that the majority of female-led households have a smaller income and smaller savings than households of similar size led by men or couples. 

Although no one likes to think that there is such a clear difference between income levels based on sex, most single women do have a more difficult time making ends meet; they make roughly half of the national average for other households of their size. Whether they are experiencing discrimination in the workplace, struggling to raise a family, or dealing with the aftereffects of divorce, it can be difficult to gain a solid financial foothold in today's economy and society.

Fortunately, there are organisations such as Femvestorsglobal who specialise in assisting women who support themselves financially. In addition to taking a unique approach that makes it easier to save without substantially cutting back living expenses, they can provide more realistic solutions for the long-term, as well - ones that take into account the struggles of getting by on one salary when faced with rising healthcare and childcare costs.

What Can Single Women Do to Save? 

The most important thing single women can do for themselves financially is to simply do something. It may not seem like much, but even sitting down and creating a list of goals for the future can be a vital first step. 

Step One: Figure out your current financial situation. 

How much money do you have coming in every month? How much money is going out? Where are there potential areas to start saving - even if it's as little as a few dollars per month at first? 

Step Two: Find a way to save. 

In order to get started on most savings and investment plans, you can have a small amount in hand. We  will be able to help you discover where to cut back to make those savings so that you can start investing earlier. 

Step Three: Invest. 

Single women without kids tend to be bigger risk takers than single women with families - at least when it comes to investing. That's because they don't necessarily have the day-to-day pressures of taking care of children. But the good news is that there is no one answer for single female investors. Whether you want to take advantage of a high-risk investment or you'd rather rely on low-risk bonds, there are financial solutions that will help you get the results you need - many of which you may not have considered before. In fact, some single women are surprised find that purchasing a home or making another large "dream" purchase can not only create a better standard of living, but can also be a sound financial investment. 

Finding the Right Financial Advisor 

Choosing an advisor to help you make smart decisions for the future is much like choosing someone to date; not only do you need a relationship you're comfortable with, but you need to feel confident that your advisor is doing everything he or she can to create the best possible outcome for your entire family. 

Ladies- this is where Femvestorsglobal can support you.

Article Source: https://EzineArticles.com/expert/Wesley_Watkis/362080

Empowerment, Equality and Your Finances

 The slogan "girl power" has been used for decades to encourage and celebrate women empowerment, independence, and confidence. The term used most often relates to sports and employment; however, new studies are showing that women need to exert their girl power when it comes to finances and financial planning. 

A recent study released by UBS shows that 58% of women worldwide defer long-term financial decisions to their spouses. This study included nearly 3,700 high-net-worth married women, widows and divorcees in 9 countries. The results of the study showed that 85% of women were responsible for the day-to-day finances; just not the long-term. 

What is really interesting is the generational span of this survey and, most notably, the generation most likely to allow someone else to control their decisions: millennials! 

Millennials are a generation well known for promoting equality and empowerment. Unfortunately, the survey results indicate the helicopter-style parenting millennials were raised with, where someone else is always ensuring their well-being, has bled into the financial realm. 

59% of millennial women aged 20 - 34 are more likely to allow their spouse to take the lead compared to 55% of women over 50. 

The general excuse from the younger women is they have "more urgent responsibilities than investing and financial planning". Even more contradictory to the equality movement is they "believe their spouses know more about long-term finances than they do". 

The challenge this arrangement poses is the lack of preparation and understanding should a life event such as death or divorce occur. The report noted that 74% of the widowed and divorced women it surveyed reported "discovering negative financial surprises after a divorce or death of their spouse." Hindsight resulted in 74% of these respondents wishing they had been more involved in long-term financial decisions while they were married, rather than trying to navigate them while coping with such significant life changes." 

The ideal solution is for both partners in a relationship to be aware of both the short- and long-term aspects of their finances. Whether you are married, engaged, common-law or committed, financial planning is another part of creating a responsible long-lasting arrangement between two parties. 

In this age, knowledge really is power. So be powerful, take control of your money. 

Like the saying goes, the first step is recognizing the problem. Take the next step in addressing the problem. 

 Article Source: https://EzineArticles.com/expert/Doug_Buss/1032256

The Secret of Successful Investing Lies in Your Feminine Side

A recent survey by Fidelity Investments, for example, found that female investors outperform male investors by an average of 40 basis points, or 0.4% — a seemingly negligible difference but one that packs a punch over time.

Using current workplace savings rates and a hypothetical salary of $50,000, the survey found that women who start investing at age 22 would have $276,000 (or 15.4%) more socked away by age 67 than their male counterpart. That calculation uses the study findings that women typically save 9% of their salary annually and achieve a 6.4% annual rate of return, while men save 8.6% of their salaries each year and achieve a 6% annual rate of return.

Another study by Warwick Business School, sponsored by Barclays, found female investors outperformed males by a wider margin —1.2%

 The University of California, Berkeley famously found almost two decades ago that female investors tend to outperform their male peers by just under 1% per year.

Since the evidence for female supremacy in the investment markets has been steadily mounting. Now psychologists can identify the character traits that make up a winning investor. They're also pinpointing those traits that explain why more men end up counting their losses in the markets. 

What are those attributes that put one a cut-above the other? Women's better investment performance may be down to the simple fact that they are: 

More cautious 

Women's portfolios are more balanced and diverse. They also choose more low risk, less faddy, options. Less competitive Women invest less of their ego in a deal. They're less motivated to prove their financial prowess to others or to be in it for the thrill. 

More consistent 

Women have been shown to back a less volatile portfolio than men. They're also better at tuning out the 'information' that others may over-react to and riding out the ups and downs of the markets. 

More patient 

They engage in less fund hopping, trade less frequently and hold investments for longer. Those that trade most frequently earn the lowest returns, this is true of both individuals and mutual funds. 

Better researchers 

Although women on the whole are less experienced investors than men, they will research more thoroughly and be less swayed by the herd. 

Sure, these aspects of the female psyche also make women more conservative investors than men. And so they may not reap the stratospheric profits (or make the mega losses) that men do. But, by investing in funds that are consistently good over time women's net returns are higher. And isn't that what counts in the end? 

Of course, many men have what it takes to make them top-notch investors. But their winning traits may not be the customarily masculine ones. The truly top male investors may be more in touch with their feminine side than we'd think. 

Apart from a lack of estrogen and fewer handbags, what else accounts for the winner-loser divide? There are three key psychological traits that, when it comes to making the savviest investment decisions, can trip men up every time.

These are: 

Attitude to risk 

Men are less risk averse than women and will back portfolios that are more uncertain. They're more likely to put all their eggs in one basket instead of opting for a safer, more diverse portfolio. Men's higher earnings and greater net worth also makes it easier for them to take greater risks than women. 

Overconfidence 

Overconfidence is consistently found in more men than women, research shows. And this is especially true in male-dominated arenas such as finance. They overestimate the returns their investments will bring and the certainty of the return. They also have a misjudged overconfidence in the accuracy of their own knowledge and over-rate their own ability. In a Gallup study, both men and women expected their portfolios to outperform the market but men expected theirs to outperform it by a greater margin. 

The herd instinct 

Constantly monitoring the market can fuel men's over-activity and cause them to act irrationally. Men are more likely to get drawn into financial follow-my-leader games and information cascades. They also fall foul of being too well informed, instead of tuning out the endless stream of news and financial information and sticking to an annual portfolio review. 

Despite women having more of the innate skills that could earn them the best returns, still lamentably few of them are in the game. Male investors outnumber females by 8 to 1, and a mere 3% of hedge funds are headed by a woman. Simonne Gnessen, who owns Wise Monkey Financial Coaching and has a predominantly female clientele, says women could do with borrowing some of that male over-confidence. "Many women have exactly what it takes to reach dizzy financial heights," she commented, "the only thing holding them back is knowing that they have it and acting on it." 

Source: https://EzineArticles.com/expert/Karen_Pine/520953 

Source: https://blog.massmutual.com/post/women-investing-right

Understanding The Most Important Investment Concepts

It's always good to have at least a basic foundation of fundamental investment knowledge whether you're a beginner to investing or working with a professional financial advisor. The reason is simple: You are likely to be more comfortable in investing your money if you understand the lingo and basic principles of investing. Combining the basics with what you want to get out of your investment strategy, you will be empowered to make financial decisions yourself more confidently and also be more engaged and interactive with your financial advisor. 

Below are a few basic principles that you should be able to understand and apply when you are looking to potentially invest your money or evaluate an investment opportunity. You'll find that the most important points pertaining to investing are quite logical and require just good common sense. The first step is to make the decision to start investing. If you've never invested your money, you're probably not comfortable with make any investment decisions or moves in the market because you have little or no experience. It's always difficult to find somewhere to begin. Even if you find a trusted financial advisor, it is still worth your time to educate yourself, so you can participate in the process of investing your money and so that you may be able to ask good questions. The more you understand the reasons behind the advice you're getting, the more comfortable you will be with the direction you've chosen. 

Don't Be Intimidated by the Financial Lingo 

If you turn on the TV to some financial network, don't worry that you can't understand the financial professionals right away. A lot of what they say can actually boil down to simple financial concepts. Make sure you ask your financial advisor the questions that concern you so you become more comfortable when investing or alternatively teach yourself as there is plenty of resources on the Internet such as Tick Tok, Youtube, Facebook groups and Instagram. Your can also follow podcasts, listen to Audio books or pick up a hardcopy.

ISA's, IRA's and Superfunds Are Containers to Hold Investments-They Aren't Investments Themselves 

The first area of confusions that most new investors get confused about is around their retirement vehicles and plans that they may have. If an investor has an individual retirement accounts, a retirements plan at work, you should understand the differences between all the accounts you have and the actual investments you have within those accounts. Your ISA, IRA, Superfund or 401(k) is just a container that houses your investments that brings with it some tax-advantages. 

Understand Stocks and Bonds 

Almost every portfolio contains these kinds of asset classes. If you buy a stock in a company, you are buying a share of the company's earnings. You become a shareholder and an owner at the same time of the company. This simply means that you have equity in the company and the company's future - ready to go up and down with the company's ups and downs. If the company is doing well, then your shares will be doing well and increase in value. If the company is not doing well or fails, then you can lose value in your investment. 

If you buy bonds, you become a creditor of the company. You are simply lending money to the company. So you don't become a shareholder or owner of the company/bond-issuer. If the company fails, then you will lose the amount of your loan to the company. However, the risk of losing your investment to bondholder is less then the risk to owners/shareholders. The reasoning behind this is that to stay in business and have access to funds to finance future expansion or growth, the company must have a good credit rating. Furthermore, the laws protects a company's bondholders over its shareholders if the company goes bankrupt. 

Stocks are considered to be equity investments, because they give the investor an equity stake in the company, while bonds are referred to as fixed-income investments or debt instruments. A mutual fund, for instance, can invest in any number or combination of stocks and bonds. 

Don't Put All Your Eggs in One Basket 

An important investment principle of all is not to invest all or most of your money into one investment. 

Include multiple and varying types of investments in your portfolio. There are many asset classes such as stocks, bonds, precious metals, commodities, art, real estate, and so on. Cash, in fact, is also an asset class. It includes currency, cash alternatives, and money-market instruments. Individual asset classes are also broken down into more precise investments such as small company stocks, large company stocks, or government issued bonds. 

The various asset classes go up and down at different times and at different speeds. The purpose of a diversified portfolio is to mitigate the ups and downs by smoothing out the volatility in a portfolio. If some investments are losing value at some particular period, others will be increasing in value at the same time. So the overarching objective is to make sure that the gainers offset the losers, which may minimize the impact of overall losses in your portfolio from any single investment. The goal that you will either have with your financial advisor and/or robo advisor to help find the right balance between the asset classes in your portfolio given your investment objectives, risk tolerance, and investment time horizon. Unless you choose to undertake your own research and create your own portfolio. This process is commonly referred to as asset allocation. 

As mentioned earlier, each asset class can be internally diversified further with investment options within that class. For example, if you decide to invest in a financial company, but are worried that you may lose your money by putting everything into one single company, consider making investments into other companies ( Company A, Company B, and Company C) rather than putting all your eggs in one basket. Even though diversification alone doesn't guarantee that you will make a profit or ensure that you won't lose value in your portfolio, it can still help you manage the amount of risk you are taking or are willing to take. 

Recognise the Tradeoff Between an Investment's Risk and Return 

Risk is generally looked at as the possibility of losing money from your investments. Return is looked at as the reward you receive for making the investment. Returns can be found by measuring the increase in value of your investment from your original investment principal. 

There is a relationship between risk and reward in finance. If you have a low risk-tolerance, then you will take on less risk when investing, which will result in a lower possible return at any given time, relatively. The highest risk investment will offer the chance to make high returns. 

Between taking on the highest risk and the lowest risk, most investors seek to find the right balance of risk and returns that he/she feels comfortable with. So, if someone advises you to get in on an investment that has a high return and it is risk-free, then it may be too good to be true. 

Understand the Difference Between Investing for Growth and Investing for Income 

Once you make the decision to invest, you may want to consider whether the objective of your portfolio is have it increase in value by growing overtime, or is it to produce a fixed income stream for you to supplement your current income, or is it maybe a combination of the two? 

Based on your decision, you will either target growth oriented investments or income oriented ones. U.S. Treasury bills, for instance, provide a regular income stream for investors through regular interest payments, and the value of your initial principal tends to be more stable and secure as opposed to a bond issued by a new software company. Likewise, an equity investment in a larger company such as Apple is generally less risky than a new company. Furthermore, Apple may provide dividends every quarter to their investors which can be used as an income stream as well. Typically, newer companies reinvest any income back into the business to make it grow. However, if a new company becomes successful, then the value of your equities in that company may grow at a much higher rate than an established company. This increase is typically referred to as capital appreciation. 

Whether you are looking for growth, income, or both, your decision will fully depend on your individual financial and investment objectives and needs. And, each type may play its own part in your portfolio. 

Understand the Power of Compounding on Your Investment Returns 

Compounding is an important investment principle. When you reinvest any dividends or other investment returns, you begin to earn returns on your past returns. 

Consider a simple example of a plain bank certificate of deposit (CD) that is rolled over to a new CD including its past returns each time it matures. Interest that is earned over the lifetime of the CD becomes part of the next period's sum on which interest is assessed on. At the beginning, when you initially invest your money compounding may seem like only a little snowball; however, as time goes by, that little snowball gets larger because of interest compounding upon interest. This helps your portfolio grow much faster. 

You Don't Have to Go at It Alone 

A Financial Advisor or Robo Advisor can give you the investment guidance that you need so that you don't have to stop yourself from investing in the market because you feel like you don't know enough yet. Knowing the basic financial principles, having good common sense, and seeking guidance along the way can help you start evaluating investment opportunities for your portfolio and help get you closer toward achieving your financial goals. 

Article Source: https://EzineArticles.com/expert/Yulian_Isakov/836688

8 Causes of financial failure

Struggling financially? A lot of people are, even though they give everyone the impression that they have it all made. They are working, live in a nice house and drive a nice car, but are living from payday to payday. Here are 8 major causes why people are struggling today.

Living beyond your means 

There is no getting away from it. If you spend more money than you earn then you must be getting your extra money from somewhere and that almost always means borrowed money, also called buying on credit. There is a cost to all of this and it is called interest. If you are in the habit of buying stuff on credit then the interest you are paying during your lifetime will add up to a fortune. The interest is sometimes called dead money because you have nothing to show for all of the interest you are paying. Think of what you could have spent with all of that interest. It is almost too painful to even think about but if you are to avoid poverty then you need to pull your head out of the sand and face the facts; your financial future depends on it. 

Keeping up with the Jones's 

Some people try to keep up with their peers with whatever they are spending their money on. It's a compulsion that will cost you plenty. Living up to some kind of self image will severely dent your finances and will prove costly by the time you stop working. You may think your peers are doing well financially to afford this stuff or even think they have done well for themselves but what you don't know may surprise you. That they may be up to their eyeballs in debt. Even if they are living within their means to finance their lifestyle, it does not mean you have to keep up with them. Don't be a people pleaser and live up to other people's expectations, live according to what is the right course of action for your own circumstances and you will be far happier. 

Consumer Debt 

Consumer debt or dumb debt as it is often called is purchasing stuff with borrowed money. It is spending tomorrow's income today. Debtors are usually oblivious to what is happening to the so-called stuff they bought on credit; that their newly acquired possessions are worth less the minute they have bought it. A crucial factor which needs to be observed is this; The money owing on the item is always more than what the item is worth. So many people are caught up in the debt poverty cycle and it is not just those on lower-incomes; in fact people on a middle -income are prone to this trap.

Commercial Greed 

Commercialism during the 20th century has brought a lot of prosperity; it has provided jobs and created countless businesses but there is another side to it. Social media and society has caused us to have an insatiable appetite for things. People are not content with just stuff they need but keep wanting more. This all has to be paid for, it is money that could have been used to build a financial base for their future. 

Addictions 

Addictions are very expensive; just ask any smokers. One does not need to be a mathmatician to calculate how much cigarettte smokers are paying for their addictions. It is estimated at over $A100 per week. That equates to $5200 per annum. No wonder many smokers are broke. It is the same with those who are addicted to alcohol and the pokies. 

Financial illiteracy 

Financial illiteracy is the major cause of financial poverty and it is not only those with low incomes who are financially illiterate; people on a high income can also be guilty of this. You hear stories of successful sports people who earned millions during their heyday but are broke years after their retirement. It is important to save and invest your money during your best earning years to set you up for when you are no longer earning as much. 

Irresponsibility 

Not taking responsibility for your own finances is irresponsibility. They will come up with all kinds of excuses why they or are not contributing to savings, and investment opportunities. Excuses such as, "You can't take it all with you," "I might die before retirement," or "I'm only young." People who are irresponsible with their finances tend to be irresponsible in other areas of their lives as well. Making commitments whether it is in a relationship, owning a house or car, or saving for your retirement takes responsibility

Bad Company 

There is no doubt that bad company is a major reason why so many people are living in poverty. It has been said, "You are the average of the five people you spend most of your time with," so it pays to examine who you are hanging out with and ask whether their attitudes and opinions on finance are influencing your money habits. In order to grow you need people to help and encourage you. This sometimes means separating from bad company. Some find that hard but in the long run it is all worth it.

Article Source: https://EzineArticles.com/expert/Robert_Alan_Stewart/2287449

7 Reasons Stock Exchanges Have Performed, So Well, Recently!

 In the past, few years, we have witnessed, a performance, by Stock Exchanges, which, exceeded, many of those, in previous periods! Although, former President Donald J. Trump, wanted to take credit for this phenomenon, in reality, it was probably, due to, a variety of factors, to a significant degree! In reality, there are, at least, 7 reasons, for this performance. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 7 possible, reasons/ causes, for this, and what, it may mean, and represent. 

1. 2017 Tax Reform Legislation: 

Although, politically, promoted, as great news, and helpful, to the middle - class, the greatest beneficiaries, of the 2017 tax legislation, has been, the largest corporations, and wealthiest Americans! In fact, many believe, it was, actually, Welfare, for the Wealthiest! 

One impact was, corporations, made far- more money, not predominantly, because, they expanded, their sales results, but, rather, lowered their costs/ expenses, by paying less taxes. Supporters of this, claim, when large corporations, make more, it helps others, but, the promised, employment boosts, didn't seem to occur, in any significant way! Since, corporations made greater profits, their stocks, appeared, more appealing, and thus, many investors, sought to get involved! In addition, the richest, potential, investors, ended - up, with a lot more, disposable - income! 

2. Artificially - low, interest rates: 

These past, few years, interest rates, have been, at, or near, historically, low rates! While, it made loans, more affordable, it also, made the cost, of Margin, cheaper, also! In addition, it translated - to, investors, having fewer options, because, the return, on fixed - income, investments, such as Bonds, and bank interest, lost popularity, because of the low return! 

3. Cheap Money: 

Low rates meant Cheap Money, and many took advantage, by investing. Corporations also, discovered, they could borrow, at low rates, and, make themselves, appear, far more attractive, to potential investors! 

4. Manipulation/ Day Trading: 

Larger investors appeared to try to take advantage, by using steps, manipulating, prices - upward, to their advantage! Because of the ease, created, because of the Internet, we have also witnessed, far - more, Day Trading, which, also, tends, to raise the overall, Stock Markets! 

5. The Internet: 

The expansion of Discount Brokerage Houses, and reduced minimums, commissions, etc, combined, with, the ease, of investing, created by the enhancements, from the Internet, has benefit stocks, etc! 

6. Wishful thinking: 

How much of the increase, is based, on fundamentals, and quality, and, how much, on wishful thinking, hopeful reasoning, speculation, and so - called, tips? 

7. Strong fundamentals/ optimism: 

Some of the optimism is warranted, especially, when it comes to certain stocks, with quality fundamentals! 

There are many reasons, the price of stocks, have risen! Some are deserved, some are speculative. A wise investor proceeds, with, thorough consideration, and awareness! Know, before you invest! Weigh your approaches, based on your personal comfort levels, and, on a, risk/ reward basis!

Images:Courtesy of Fool.com

Article Source: https://EzineArticles.com/expert/Richard_Brody/492539